Elements of Financial Statements

Which of the following is an example of an operating expense?

• Loan interest

• Sales revenue

• Office rent

• Dividend paid

Which of the following is NOT an example of a current asset?

• Inventory

• Cash at bank

• Land

• Accounts receivable

Which of the following best defines Owner's equity?

• The total assets owned by a business

• The owner's share of the business after liabilities are paid

• The total liabilities of a business

• The profit earned by a business

Unearned revenue is recorded as :

• an asset

• a liability

• an expense

• owner's equilty

Revenue is recorded after deducting expenses.

• True

• False

Which of the following is NOT considered a liability?

• Accrued expenses

• Mortgage payable

• Retained earnings

• Income tax payable

"Assets expected to be used or converted into cash within one year" refers to:

• Fixed assets

• Current assets

• Intangible assets

• Current liabilities

Cost of goods sold (COGS) is classified as:

• Revenue

• Asset

• Operating expense

• Liability

What does "revenue" mean in accounting?

• Money left after expenses

• Total money earned from sales or services before expenses

• The value of assets owned by a company

• Cash collected from customers only

Which of the following increases owner's equity?

• Additional capital contributed by the owner

• Withdrawal of cash by the owner

• Increase in liabilities

• payment of expenses